More than half (52%) of UK organisations are actively cutting expenses in response to rising government costs - including the recent National Insurance increases that came into effect this month. That’s one of the key findings from our latest survey in partnership with ExpenseIn, which joined the AccountsIQ Group earlier this year.
We gathered insights from 125 CFOs and senior finance leaders across the UK to understand how rising government-imposed costs are affecting financial decision-making and expense management within UK organisations. Targeting senior finance leaders, the research focused on how businesses are reacting to financial pressures.
With one in four businesses already introducing expense restrictions – and many more planning to – it’s clear that finance teams are under increasing pressure to rethink how they manage spending.
Expense control is now an important priority
The numbers speak for themselves. In addition to the 52% already implementing or planning cuts, a further 17% say they might follow suit. Only 5% of respondents aren’t considering changes to their expense policies.
This shift isn’t just about reacting to new tax pressures. Our survey also reveals that businesses are reassessing some of the most fundamental areas of finance operations. Payroll was identified as the area under most scrutiny (46%), followed closely by expenses (24%). It’s clear that many finance teams are now reviewing core costs to remain a step ahead in an increasingly tougher economic climate.
Visibility, control and efficiency in the spotlight
Tighter expense policies make sense, but they also expose long-standing challenges. Among the top concerns cited by finance leaders were:
- Keeping up with regulatory compliance (40%)
- Managing manual processes (23%)
These figures show that the traditional ways of managing expenses are no longer fit for purpose. In an environment where visibility, control and speed are essential for scaling businesses, finance leaders need better tools to simplify workflows and ensure compliance.
Turning cost-cutting into transformation
Many finance teams are now embracing automation, cloud solutions and integrated platforms to simplify expense management and free up time for more value-adding work.
As Richard Jones, Managing Director of ExpenseIn, notes:
“With employee expense policies tightening, businesses need better visibility and control over spending. Simplifying expense management through automation can help finance teams ensure compliance while reducing the administrative burden on employees.”
AccountsIQ CEO Darren Cran adds:
“We know this is a challenging time for finance teams, but it’s also a time of opportunity. The ambitious businesses we work with are using this moment to get the best out of automation, streamline processes and re-motivate their finance teams to focus on strategy, not paperwork.”
A smarter future for finance
Finance leaders are being asked to do more with less – and that’s unlikely to change. But by investing in the right tools and technologies, finance teams can move beyond firefighting and lead their organisations towards greater efficiency and a better work-life balance in turn.
At AccountsIQ, we believe expense management is no longer just a back-office task. Want to learn more about how AccountsIQ and ExpenseIn can help your finance team take control of expenses?
Book a demo or contact us to see how we’re helping mid-market businesses navigate change with confidence.
